Needs vs. wants

ZingEvery month, there are things I have to pay for, like putting gas in my spaceship. I also need to buy food and — of course — have fun!

These are my monthly expenses — gas, food, video games, movies, and music.

A gas pump, a bag of groceries, and a pinball machine.

ZingBut unfortunately I don’t have all the money on Earth to pay for them. So I have to make choices on how I spend what money I earn. I have to make decisions based on whether I need something, or just want it.

ZoeyThat’s smart. Where do YOU start when you want to make a budget?
ZingFor me, I budget first for the things I really need — like fuel and food (yum!). Once I’ve covered my needs, I plan for fun — lots of it! The trick is to budget your money so you can buy what you need first — and if there’s money left over, you can save for the things you want!

ZoeyRight! Think of how many video games and other things you can buy once you budget for them! Now, let’s see a budget in action.

Click the Next button to learn about working with a budget.